Although the Federal Reserve cushioned the news by ascribing it to shortages caused by the Japanese earthquakes/tsunami, the central bank reported that U.S. industrial output was flat for the month of April. Growth rates for March and February were also revised downwards. Expectations for April were for a 0.3% gain. Capacity utilization was down marginally.
Gold didn't react to the news; nor did the U.S. dollar. The metal was afflicted by a two-stage tumble before the release time of 9:15, dropping to $1,478 before stabilizing around $1,480. That drop was not caused by a greenback run-up. After a recovery rally at 10:15, which peaked at $1,484 at 10:30, the metal tumbled yet again to $1,472.20 before bouncing up to $1,475. A small rise in the greenback may have triggered the latest sell-off.